Don’t miss the latest developments in business and finance.

Prices of Chinese gallium steady after rush to beat export curbs eases

Inquiries from foreign buyers have dissipated, researcher Shanghai Metals Market said, citing market participants. Risks rising as shipments may not able to leave before curbs kick in next month

China Flag
Photo: Wikimedia Commons
Bloomberg
2 min read Last Updated : Jul 14 2023 | 9:26 AM IST
By Bloomberg News


A rush by overseas buyers for Chinese gallium — a niche-but-critical metal that’s soon to be subject to export controls — has eased off as the pace of inquiries slows and local prices stabilize.
 
Inquiries from foreign buyers have dissipated, researcher Shanghai Metals Market said in a note, citing market participants. Risks are rising as shipments may not able to leave before the curbs kick in next month, it said.

China announced the restrictions on gallium as well as a second metal, germanium, earlier this month in a move seen as an escalation of the country’s tit-for-tat trade war on technology with the US and Europe. The two metals are crucial to parts of the semiconductor, telecommunications and electric-vehicle industries, and the curbs prompted US Treasury Secretary Janet Yellen to voice her concern during a recent visit to Beijing.

After an initial gain, local gallium prices have steadied. The free-on-board price has been unchanged at $290 a kilogram for the past two days, according to Asian Metal Inc. That follows a 16% jump after the announcement of the restrictions, which require exporters to apply for licenses from the commerce ministry.

Chinese prices may drop later this year as the curbs keep more supply at home, exacerbating a domestic surplus, according to SMM. China is the top producer of primary gallium, with capacity of over 800 tons a year, it said. 

Also Read


Global gallium prices have also steadied after a spike. This week, they’ve risen just 1.5% to $331 a kilogram, following a 27% surge last week as buyers rushed to lock in supply before the Chinese curbs start on Aug. 1.

© 2023 Bloomberg L.P.

More From This Section

Topics :ChinaMetalExportChina economy

First Published: Jul 14 2023 | 9:26 AM IST

Next Story